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Record Retention: Financial Institutions, Credit Unions, Independent Trust Companies & Licensees

Regulation
Tuesday, July 1, 2014
B-2014-01

REGULATION B-2014-01

RECORD RETENTION

FINANCIAL INSTITUTIONS, CREDIT UNIONS,

INDEPENDENT TRUST COMPANIES & LICENSEES

(This Regulation Replaces Regulation B-92-1)

(Effective Date - July 1, 2014)

 

SECTION ONE: APPLICABILITY AND SCOPE

1.1 This regulation ("Regulation") is issued pursuant to 8 V.S.A. §§ 15, 2214, 2766, 2914, 11301, and 30401.

1.2 This Regulation applies to:

a. financial institutions as defined in 8 V.S.A. § 11101(32);

b. credit unions as defined by 8 V.S.A. § 30101(5);

c. independent trust companies regulated under 8 V.S.A. Chapter 77; and

d. all other state licensed financial businesses regulated under Parts 2, 5, and 6 of Title 8 V.S.A., including: Licensed Lenders; Mortgage Brokers; Loan Servicers; Sales Finance Companies; Money Servicers; Check Cashing & Currency Exchangers; and Debt Adjusters

(the “Institutions”).

The types of Institutions included in these definitions shall include federally or nationally chartered Institutions, insofar as this Regulation does not contravene paramount federal law.

1.3 The general intent of this Regulation is to require that an Institution be able to rebuild a transaction for seven years from the date of the transaction or seven years from the payoff date of a loan, as applicable. Notwithstanding the foregoing, this Regulation requires that certain records be held longer than seven years and gives Institutions the option to hold some records for less than seven years, as set forth in Appendix I.

1.4 This Regulation applies to records created on or after July 1, 2014.

1.5 This Regulation does not apply to those records created prior to July 1, 2014. The retention period applicable to such records shall be the period required at the time such record was created.

SECTION TWO: PROCEDURES

2.1 An Institution shall adopt and implement a written record management policy that includes:

a. retention periods for all of the Institution’s records;

b. the manner of retention;

c. the method of disposal of such records upon expiration of the retention period; and

d. procedures to protect records from theft, fire, vandalism, loss, damage, or unauthorized access.

In addition to the retention requirements, any record that contains confidential information should be treated in accordance with the Institution’s confidentiality, privacy, and security policies.

2.2 Institutions shall retain all records for at least the minimum time period specified in this Regulation.

2.3 If the Institution does not maintain a record enumerated in this Regulation, but maintains a similar record with equivalent information, the Institution's records shall be retained for the period of time specified herein for such equivalent records.

2.4 In the event a retention period imposed by other state laws or regulations, federal laws or regulations, court orders, other governmental agencies, or Institution policies conflicts with the retention period set forth in this Regulation, the longer retention period shall control.

2.5 Records that are not specifically enumerated in this Regulation, but that are subject to retention requirements pursuant to other state laws or regulations, federal laws or regulation, court orders, or Institution policies, shall be retained for the period specified by such applicable requirement.

2.6 Records that are not specifically enumerated in Appendix I of this Regulation and that are not subject to retention requirements pursuant to other state laws or regulations, federal laws or regulation, court orders, or Institution policies may be destroyed at the end of seven (7) years from the date of the transaction or at the end of seven (7) years from the payoff date of a loan, as applicable, upon authorization of the Institution’s governing body.

2.7 Records that are not specifically enumerated in Appendix I, that are not subject to retention requirements pursuant to other state laws or regulations, federal laws or regulations, or court orders, and are not part of an actual transaction or loan may be destroyed at the discretion of the Institution as specified in its record retention policy as authorized by the Institution’s governing body.

2.8 The content of the record and not the medium in which it is sent or received determines the applicable record retention period. (For example, a document received by e-mail may be correspondence, a promissory note, or a casualty liability policy depending on the content of the e-mail.)

2.9 All records must be maintained in a form and manner that is consistent with reasonable business practices and with any applicable law or regulation. Without limiting the foregoing, records may be maintained in original form, as a copy thereof, or in a manner that can accurately produce, regenerate, or transmit the original record. Records retained in paper, photograph, microprocess, magnetic, digital, mechanical or electronic media, or in or by any other information storage device or process which forms a durable medium shall be treated as the equivalent of original records for purposes of compliance with this Regulation.

2.10 Institutions shall dispose of records in accordance with the Vermont Document Safe Destruction Act, 9 V.S.A. Chapter 62, subchapter 4, or any successor to such Act, to the extent such Act applies to the Institution.

SECTION THREE: ELECTRONIC DATA PROCESSING

3.1 Retention periods specified for records listed in this Regulation apply to equivalent records produced or maintained by means of electronic data processing.

3.2 An Institution shall adopt and implement a written policy to protect electronic data processing files from theft, fire, vandalism, loss, damage, or unauthorized access.

SECTION FOUR: SANCTIONS

4.1 In addition to any other sanctions available to the Commissioner, violations of this Regulation are subject to the provisions of 8 V.S.A. Chapter 201, subchapter 6.


APPENDIX I

RECORDS THAT REQUIRE PERMANENT RETENTION

Articles of Incorporation or Other Association, Bylaws and Other Records of Organization, Amendments, etc.

Permanent

Administration - General

Capital Stock Certificates - Cancelled

Permanent

Administration - General

Capital Stock Certificate Records and/or Stubs

Permanent

Administration - General

Capital Stock Ledger (Shareholders)

Permanent

Administration - General

Capital Stock Transfer Ledger/Register

Permanent

Administration - General

Certificates of Authority/Approval, Charter

Permanent

Administration - General

Charged-off Asset Records

Permanent

Investments, Loans, Loans - Real Estate

General Ledger (Income & Expense, Statement of Condition)

Permanent

Accounting & Auditing, General Ledger

Member Lists - Non-profit, Cooperative, Limited Liability and Mutual Entities

Permanent

Administration - General

Minutes Book of Meetings (Stockholder, Members, Directors)

Permanent

Administration - General

Minutes of Audit, Credit & Supervisory Committee Meetings

Permanent

Administration - General

Minutes of Investment &Trust Committee Meetings

Permanent

Administration - General

Reports of Examination and Responses – State and Federal

Permanent

Administration - General

Surety Bond

Permanent

Administration - General

Unclaimed or Escheated Property Report

Permanent

Correspondent Accounts, Deposits - Savings & Time, Deposits - Transaction, Individual Retirement Accounts, Safe Deposit & Safekeeping


 

 

TRUST RECORDS

TRUST RECORDS

MINIMUM RECORD RETENTION PERIODS

ACCOUNTING & AUDITING

Deposit Confirmations

3 Years

General Ledger (Income & Expense, Statement of Condition)

Permanent

Loan Confirmations

3 Years

Reconcilements to General Ledger

3 Years

ADMINISTRATION (CORPORATE)

General

Articles of Incorporation or Other Association, Bylaws and Other Records of Organization, Amendments, etc.

Permanent

Capital Stock Certificates - Cancelled

Permanent

Capital Stock Certificate Records and/or Stubs

Permanent

Capital Stock Ledger (Shareholders)

Permanent

Capital Stock Transfer Ledger/Register

Permanent

Certificates of Authority/Approval, Charter

Permanent

FDIC Assessment Base Records Determination

5 Years

Member Lists - Non-profit, Cooperative, Limited Liability and Mutual Entities

Permanent

Minutes Book of Meetings (Stockholder, Members, Directors)

Permanent

Minutes of Audit, Credit & Supervisory Committee Meetings

Permanent

Minutes of Investment & Trust Committee Meetings

Permanent

Reports of Examination and Responses – State and Federal

Permanent

Statements of Directors and Principal Officers

3 Years

Insurance

Blanket Bond & Employee Bonds & Fidelity Bonds

21 Years

Bonds of Indemnity

7 Years After Cancellation

Casualty Liability Policies

3 Years

Fire, Accident & Liability Policies

21 Years

Records of All Insurance Policies (Showing Policy Numbers, Premiums Paid, and Amounts Recovered)

3 Years

Surety Bond

Permanent

COLLECTIONS (not related to Debt Collection)

Collection Payment Records

1 Year

Collection Register

1 Year

Coupon Cash Letters (Outgoing)

1 Year

Incoming Collection Letters

1 Year

Incoming Contract or Note Letters

7 Years After Closing

Outgoing Collection Letters and Register

1 Year

Settlement

3 Years

CORRESPONDENT ACCOUNTS (DUE TO & DUE FROM)

Advices & Drafts

3 Years

Incoming Cash Letter Memos

3 Years

Information and Documents Pertaining to Issuance of Duplicate Checks and Drafts

7 Years After Check Draft Paid

Records of Foreign Financial Accounts

7 Years After Account Closed

Resolutions

7 Years After Account Closed

Signature Cards

7 Years After Account Closed

Statements & Reconcilements

3 Years

Unclaimed or Escheated Property Report

Permanent

Unclaimed or Escheated Property – Records of Ownership

10 Years After Surrender of Funds to the State Treasurer’s Office

Undelivered Statements and Canceled Checks

2 Years

CREDIT CARDS/DEBIT CARDS/STORED VALUE

Credit Applications and Information (Declined)

25 Months

Transaction History

7 Years After Account Closed

CUSTOMER SERVICE

Change in Address

1 Year

Correspondence

3 Years

Securities Buy and Sell Orders

3 Years After Date of Order

DEPOSITS - SAVINGS & TIME

Affidavits of Lost Passbooks and Records of Transactions Based Thereon

7 Years After Closing

Certificates of Deposit

7 Years After Closing

Copies of Advices of Deposits

2 Years

Copies of Advices of Debits and Credits

2 Years

Customer Statements

3 Years

Interest Report (Accrual Records)

3 Years

Power of Attorney

7 Years After Closing

Resolutions and Customer Authorizations

7 Years After Closing

Signature Cards, unless escheated

7 Years After Closing

Surety Bond for Lost Certificate

7 Years After Closing

Taxpayer ID# or SS# of Depositor

7 Years After Closing

Unclaimed or Escheated Property Report

Permanent

Unclaimed or Escheated Property – Records of Ownership

10 Years After Surrender of Funds to the State Treasurer’s Office

DEPOSITS - TRANSACTION (CHECKING, SHARE, MONEY MARKET)

Account Analysis (Work Sheets or Cards, Average Balance Cards, Interest Computation Records, Service Charge Records)

2 Years

Bookkeepers Daily List of Checks Charged in Total to Customer Accounts (Short Lists)

2 Years

Copies of Advices of Deposits

2 Years

Copies of Advices of Debits and Credits

2 Years

Customer Statements

3 Years

Daily Reports of Overdrafts

6 Months

Individual Ledgers

2 Years

Kiting Suspect Report

6 Months

Partnership Agreement and Authority

7 Years After Closing

Resolutions and Customer Authorizations

7 Years After Closing

Service Charges

2 Years

Signature Cards, unless escheated

7 Years After Closing

Statement Mailing Order

1 Year

Statement Receipt Cards

1 Year

Stop Payment Order

1 Year

Transaction Journal

3 Years

Unclaimed or Escheated Property Report

Permanent

Unclaimed or Escheated Property – Records of Ownership

10 Years After Surrender of Funds to the State Treasurer’s Office

GENERAL

Correspondence

3 Years

Night Depository Agreements

7 Years After Termination of Agreement

Securitization

7 Years After Termination

Vault Records, Openings and Closings

1 Year

GENERAL LEDGER

Income & Expense Statement

Permanent

Statement of Condition

Permanent

INTERNATIONAL DEPARTMENT/WIRE/MONEY TRANSFER

Foreign Asset Control Records

3 Years

Foreign Draft Applications

5 Years

Foreign Mail Transfer Applications

5 Years

Letters of Credit Applications

7 Years After Payment in Full

INDIVIDUAL RETIREMENT ACCOUNTS

Account Agreements

7 Years After Last Distribution

Customer Statements

3 Years

Signature Cards, unless escheated

7 Years After Closing

Taxpayer ID# or SS# of Depositor

7 Years After Closing

Unclaimed or Escheated Property Report

Permanent

Unclaimed or Escheated Property - Records of Ownership

10 Years After Surrender of Funds to the State Treasurer’s Office

INVESTMENTS

Charged-off Asset Records

Permanent

Credit Information Regarding Securities Underwritten or Purchased for Own Account

7 Years After Closing

LOANS (excluding REAL ESTATE LOANS)

Charged-off Asset Records

Permanent

Correspondence

3 Years

Credit Applications and Information (Declined)

25 Months

Credit Files

7 Years After Closing

Evidence of Compliance With Fair Credit Reporting Act

2 Years After Closing

Evidence of Compliance with Regulation Z Truth in Lending

3 Years After Each Required Disclosure

Letter of Credit Applications

7 Years After Payment in Full

Note or Discount Register (If Used as Book of Original Entry With Descriptions)

6 Years After Termination of Account

Resolutions for Commercial Loans

7 Years After Closing

Statement Regarding Loan Secured by Stock

7 Years After Closing

Transaction History

7 Years After Closing

LOANS - REAL ESTATE

Charged-off Asset Records

Permanent

Evidence of Compliance with Fair Credit Reporting Act

2 Years

Evidence of Compliance with Regulation Z Truth in Lending

3 Years After Each Required Disclosure

Guaranteed Loans Complete Files

7 Years After Termination

Home Mortgage Disclosure Act Information

5 Years

Ledger Cards

7 Years After Termination

Record of Deeds

40 Years

RESPA Settlement Statements

2 Years After Closing Account

PERSONNEL

Advertisements and Notices

1 Year After Personnel Action

Attendance Records (Time Cards)

3 Years

Employment Application (Rejected)

1 Year

Occupational Safety and Health Act (OSHA) Forms

5 Years

PROOF, CLEARING, AND TRANSIT

Copies of Advices of Corrections

3 Years

Incoming Cash Letters

3 Years

In-clearing Proof Sheets and/or Tapes

3 Years

Out-clearing Proof Sheets and/or Tapes

3 Years

Outgoing Cash Letters

3 Years

SAFE DEPOSIT & SAFEKEEPING

Leases or Contracts, Closed Accounts

7 Years After Closing

Signature Cards, unless escheated

7 Years After Closing

Taxpayer ID# or SS# of Depositor

7 Years After Closing

Unclaimed or Escheated Property Report

Permanent

Unclaimed or Escheated Property - Records of Ownership

10 Years After Surrender of Funds to the State Treasurer’s Office

TELLERS

ATM & Night Deposit Envelopes

3 Months

Cash Item Register

2 Years

Cashier, Certified, Official, Treasurers Checks

7 Years After Clearing

Tellers’ Blotter of Journals

1 Year

Tellers’ Difference Record

1 Year

Vault Records, Openings and Closings

1 Year

TRUST RECORDS

Corporate Trusts & Employee Benefit Plans

Accounting of Other Fiduciaries and Decrees, Receipts, or Releases Settling Accounts

7 Years After Termination of Trust Account

Bond Ledger

7 Years After Termination of Trust Account

Brokers’ Purchase and Sale Confirmation

3 Years

Brokers’ Statements

3 Years

Buy and Sell Orders

3 Years

Corporate Trust Ledger

21 Years

Correspondence

7 Years After Termination of Trust Account

Governing Instruments

21 Years After Termination of Trust Account

Receipts or Disposition for Canceled Stock Certificates, Canceled Bonds and Coupons

7 Years After Termination of Trust Account

Records of Stock Issuance & Transfer

7 Years After Termination of Trust Account

Registration Journals

7 Years After Termination of Trust Account

Trust Asset Records

7 Years After Termination of Trust Account

Trust Journals (If Source of Original Entry)

7 Years After Termination of Trust Account

Personal Trusts And Agency Relationships

Accounting of Other Fiduciaries and Decrees, Receipts, or Releases Settling Accounts

7 Years After Termination of Trust Account

Brokers’ Confirmations

3 Years

Brokers’ Statements

3 Years

Buy and Sell Orders

3 Years

Correspondence

7 Years After Termination of Trust Account

Governing Instruments

21 Years After Termination of Trust Account

Inventory Records

7 Years After Termination of Trust Account

Letters of Appointment

7 Years After Termination of Appointment

Probate Records

7 Years After Termination of Trust Account

Receipts or Disposition for Canceled Stock Certificates, Canceled Bonds and Coupons

7 Years After Termination of Trust Account

Records of Stock Issuance & Transfer

7 Years After Termination of Trust Account

Trust Agreements

7 Years After Date of Last Entry

UNCLAIMED PROPERTY

Unclaimed Deposit Account Withdrawal Tickets or Checks

7 Years After Date Reportable

Unclaimed or Escheated Property Deposit Ledgers (To Include Record of Date of Last Transaction or Communication From Owner)

7 Years After Date Reportable

Unclaimed or Escheated Property Report

Permanent

Unclaimed or Escheated Property - Records of Ownership

10 Years After Surrender of Funds to the State Treasurer’s Office